Journal of Management and Governance

Published by Springer Nature
Online ISSN: 1572-963X
Print ISSN: 1385-3457
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Recent publications
The theoretical framework of the study
A behavioral model for the role of chairperson in subsidiary boards based on findings
This study aimed to investigate the leadership roles of subsidiary board chairpersons (SBCs). To this end, the study focused on the effect of the context of the parent company on the roles of SBCs in enhancing board effectiveness. This can be a response to the call for further investigation on the role of contextual and institutional factors in board effectiveness. An embedded multiple-case study design was used to compare the leadership role of chairpersons of the two groups of boards with high and low effectiveness in a corporation assessed via a multi-source appraisal method. Based on a series of interviews, we compared the mechanisms that differentiated the two groups of boards. Managing conflict between board members and CEO, board members’ motivation, and decision-making influenced by the parent company were salient mechanisms increasing board effectiveness. The findings of the study suggest that SBCs can play a crucial role in keeping the balance between the expectations of different stakeholders including the subsidiary board itself and the CEO on the one hand, and adjusting the way the board interacts with the staff offices of the parent company on the other.
 
The theoretical model
Steps from data collection to analysis
As cybersecurity is a critical risk issue for organizations, cybersecurity disclosure is important for financial regulators, financial analysts, shareholders, and other stakeholders. Organizations face challenges when deciding whether, what, and when cybersecurity-related information should be disclosed. Prior studies have contributed few insights regarding the potential determinants of cybersecurity disclosure. Furthermore, their findings are based on a general or narrow measurement of this disclosure. This study draws on upper echelons and signaling theories to examine the association between various board of directors’ characteristics and extent of overall cybersecurity disclosure and its individual aspects. Extent of cybersecurity disclosure is measured based on a content analysis of annual financial regulatory filings of the 250 companies listed on the S&P/TSX Composite Index, using a scoring grid of 40 items grouped into seven categories representing different aspects of cybersecurity disclosure. This expanded disclosure measurement provides original insights for firms and their stakeholders. The main findings indicate that the presence of a committee responsible for cybersecurity on the board of directors is key to increasing cybersecurity disclosure. With or without such a committee, board IT expertise, board tenure, board independence, women directors, and board age are associated with the extent of total cybersecurity disclosure or some of its specific aspects, particularly cybersecurity risk mitigation. These findings contribute to the cybersecurity literature by examining which board of directors’ characteristics influence the extent of specific aspects of cybersecurity disclosure. They also complement results from upper echelons-based studies on corporate reporting determinants and prior IT governance studies.
 
Several authors have stated that the board of directors serve as the most crucial internal mechanism for improving a company’s performance. On the other hand, prior studies argue that the board did not serve its purpose of safeguarding the stakeholders’ interests equally and improving the performance of companies. It has piqued the interest of regulatory organisations all around the world, including in India. However, out of the several reforms introduced in India, board size is one of the most significant. As a result, the present study scrutinises the non-linear influence of board size on the performance of 213 Indian companies for 2001–2019. Tobin’s Q and Return on Equity (ROE) are the study’s performance metrics. The fixed effect panel regression findings depict that board size has an inverted U-shaped non-linear impact, i.e., initially, the performance improves, but after board size reaches a particular point, it diminishes. Thus, this study supports the recent changes made by the regulatory bodies about board size.
 
Data structure
A framework of Big Data and knowledge creation
The creation of knowledge from Big Data is increasingly drawing the attention of scholars and practitioners in management research. Valuable knowledge first requires identifying the Big Data features connected to knowledge insights creation and the mechanism beyond this creation. This paper examines Big Data dimensions and insights creations at a fine-grained level by adopting the knowledge creation lens. Specifically, what is the mechanism of creating knowledge from Big Data? How to transform raw Big Data into knowledge? We adopted a qualitative case study to explore the large-scale multinational pilot launched in three European cities. The pilot amalgamated a large amount of data feeds from different sensors and open data and created various insights to inform cities’ strategies. By employing an inductive content analysis with abductive procedures and coupling it with participatory observations, we were able to ground findings on the multi-level empirical and theoretical base and build a framework that embraces all discovered complexities and fine-grained features of Big Data dimensions and guides knowledge creation from Big Data. Our research offers a more in-depth understanding of the mechanism of knowledge creation in the BD context. First, we opened up BD's black box by disentangling the knowledge creation mechanism while transforming raw BD into BD insights. Second, our study offered empirical evidence of the growth mechanism working on Volume and Variety dimensions. The uniqueness of this study lies in the fine-grained perspective of BD characteristics and the underlying mechanism of insights creation.
 
Empirical model
Empirical model
Mediating effect of cognitive diversity and demographic diversity on the relation between social performance and social disclosure quality
Mediating effect of cognitive diversity and demographic diversity on the relation between environmental performance and environmental disclosure quality
Prior research suggests that board diversity, especially in terms of gender, potentially enhances its effectiveness. However, as a construct, diversity extends beyond gender to encompass board members’ other demographic attributes as well as cognitive features such as attitudes, values, beliefs, knowledge, skills and capabilities. We expect these two sides of diversity, which we label demographic and cognitive, to play a critical role in determining a firm’s corporate social responsibility (CSR) disclosure. For our purpose, CSR performance and disclosure comprise environmental and social dimensions. Our results show that social performance exhibits a positive relation to a board’s demographic and cognitive diversities, while environmental performance relates to cognitive diversity, but not demographic diversity. Moreover, both forms of diversity mediate the positive relationship between social performance and social disclosure quality, while only demographic diversity mediates the positive relationship between environmental performance and environmental disclosure quality.
 
SEM design
Empirical SEM results. *, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively
Gender diversity on the board of directors can influence companies’ voluntary disclosure such as their environmental, social and governance disclosure (ESG). A growing body of literature suggests that most of the work of the board occurs in committees, which are smaller working groups within the board. In a smaller working group, even a small number of women can represent a higher proportion of the group. Therefore, the influence of gender diversity on a board’s decisions can be more prevalent in committees, since women’s ideas and opinions can have more of an impact in smaller working groups. By being on committees, women have the chance to actively contribute to board tasks and decisions. This study investigates the relationship between the gender diversity of the board and its main committees and the ESG disclosure of Canadian-listed companies. The results indicate a positive and significant relationship between female representation on the board and committees and ESG disclosure. Using a structural equation model, the results suggest that there is a joint influence on ESG disclosure of gender diversity at the board level and at the committee. level. In addition, the study demonstrates that for ESG disclosure, the influence of female representation on committees is higher than the influence of female representation on the board. This study shows that by being on committees, women can better contribute to board decisions and that the influence of board gender diversity is not limited to female representation on the board but also comes from female representation on committees.
 
Parmalat users and non-users’ decision about consumer behavior after the financial scandal. (Source: Marketing department of Parmalat)
Stakeholders’ decisions regarding whether to continue to support a firm after it has been perceived as culpable for socially irresponsible behaviour is “coin of the realm” in selecting which firms (or which parts of a firm) will be able to survive a corporate social irresponsibility (CSI) scandal. Our empirical setting is an embedded polar case of audience support, the Parmalat case, following a severe CSI scandal. The scandal represented a “trigger event” that ignited an active reevaluation of the firm on behalf of its stakeholders. We show that, while the firm’s cognitive legitimacy was not harmed by the CSI scandal, two dimensions of legitimacy played a key role in stakeholder evaluations: moral and pragmatic legitimacy. The capacity to manage the interplay between these two dimensions emerged as a key factor underlying stakeholders' support. Finally, we argue that if pragmatic legitimacy is feeble it is unlikely that the firm is able to maintain stakeholders' support. Our study suggests that possessing a sound source of competitive advantage in one (or more) of the businesses in which the firm operates is decisive to maintain the support of independent stakeholders following CSI scandal.
 
This study investigates the relation between the disclosure of corporate social responsibility (CSR) bad news and reputation. In particular, our analysis focuses on the moderating effect that such disclosure may have on corporate reputation. A large and growing number of studies in the CSR accounting literature provides empirical evidence supporting the argument that CSR disclosure – which has been criticized for its self-laudatory style – may serve as a reputation management tool used to camouflage a company’s image among stakeholders, hence protect its reputation. These studies suggest that an optimistically biased reporting may enhance reputation. However, recent research in the financial accounting area shows that a non-or less-optimistically biased reporting may actually have positive effects on the credibility of the information disclosed. Therefore, the paper argues that the disclosure of CSR-related bad news could be beneficial and turn into better reputation. Based on data from a sample of the most visible companies in the US, this study shows that the disclosure of bad CSR news may have positive reputational outcomes.
 
Small and Medium Enterprises (SMEs) contribute significantly to the European GDP and play a pivotal role in the ecological transition from a linear to a circular economy (CE). According to transition management theory, which emphasizes the active role of firms as accelerators of global transition processes, and based on qualitative content analysis of the literature, we found key pillars of CE (governance, relations with stakeholders and innovation) that SMEs should manage in an integrated way to increase the speed of the transition towards circularity. The result of this study is a conceptual framework that explains the development of the identified pillars in the context of the transition towards CE. This study addresses a gap in the literature concerning SMEs’ transition towards circularity, emphasizing the importance of a dynamic vision and the integrated management of a variety of key dimensions. The study also provides pragmatic advice to facilitate self-assessments by SMEs with respect to their path of transition and to maximize the effectiveness of policy-makers’ interventions to support SMEs. Finally, the study has societal implications: promoting the transition of SMEs towards CE can accelerate the global green transition due to the proximity of SMEs to the local environment and work force.
 
Action research cycles adopted. Source: our elaboration based on (Eden & Achermann, 2018; Mariotti, 2012)
Action Research’s findings
The antecedents of sustainable accounting and accountability. A conceptual model
Pressure to face sustainability challenges is encouraging research into the ways in which public managers embed sustainability in their work and implement it. The 2030 Agenda has given a boost to the use of accounting practices to achieve Sustainable Developments Goals. While sustainability, together with accounting and accountability, has been explored, less attention has been paid to the antecedents leading to its embedding in public management practices. To provide a contribution on this matter, this study investigates the organizational processes facilitating public managers in institutionalizing sustainability, accounting and accountability practices. Focusing on the 11th Sustainable Development Goal, “cities” are entrusted with making cultural heritage management sustainable, raising the research question: what challenges does the 11th Sustainable Development Goal pose for the public management of urban cultural heritage? Action Research was carried out to investigate knowledge building within a project—the “Pavia Network Project” (2014–2017)—involving practitioners and researchers. The research findings shed light on the organizational processes that led to the implementation of sustainable accounting and accountability by an Italian smart city. The choice fell on Pavia because of its invaluable cultural heritage, having been, through time, the capital of the Early Medieval Lombard Kingdom, a wealthy Renaissance court and an historical university town. From the discussion of the results, a conceptual model on the antecedents of sustainable accounting and accountability knowledge arose. Besides the limitations of Action Research, this model suggests meaningful insights for both practitioners and researchers into the organizational changes triggered by the 2030 Agenda.
 
Variables and their definitions
We study the relation between board gender diversity and goodwill (GW). GW on the balance sheet is connected to both the firm’s risk-taking and its accounting conservatism which are two popular topics in how gender diversity affects the governance of firms. GW captures the firm’s decision to acquire another business for a price exceeding the received identifiable net assets and the subsequent valuation of the purchase. We propose that board decisions affecting GW could depict information about board gender diversity and its potential effects. Specifically, we examine Nordic listed firms in the period 2009–2018, to determine whether and how female representation on the board of directors is linked to the GW change. Big GW increases are associated with risk-taking and GW write-downs are signs of conservative accounting. Thus, we hypothesize and evidence that firms with substantial GW increases (decreases) are associated with fewer (more) women on the board. These results provide insight on board composition and potentially also on good governance and their consequences for strategic decision-making. Our findings contribute to the board diversity literature in accounting and corporate governance.
 
The study investigates the relationship between gender diversity within the board of directors and firm’s financial performance. The selected sample is chosen from Bombay Stock Exchange 500 companies from India. The relationship is examined using accounting and market-based financial performance measures and board diversity is defined in respect to gender of board members. It also examines the impact of different categories of female directors on board on firm performance. We have used dynamic panel data estimation technique for analysis purposes to overcome the possibility of endogeneity and simultaneity bias. The study also examines whether female directors are likely to impose higher dividend payouts. Collectively, the results suggest that inclusion of women directors on board has a significant relationship with firm performance. We found no evidence that women directors impose higher dividend payouts. Finally, the paper discusses implications for future research and suggests that diversity must be looked at using different board parameters such as experience, ethnicity, nationality, age, qualifications etc. The benefits of diversity can be best derived when women directors on board are hired with diverse skills, competencies, life experiences etc.
 
The role of liquidity in the banking industry is increasingly under the spotlight since the Global Financial Crisis (GFC) in 2007. Prior evidence offers contrasting findings on the role played by liquidity in banks: whilst it ensures systemic financial stability, at the same time it raises agency costs. Notwithstanding this, European banks benefited from a generous liquidity injection following the launch of the Quantitative Easing (QE) programme by the European Central Bank (ECB) in 2015–2016. We leverage on the release of the QE and investigate whether investors’ reactions to the announcements of new liquidity injections vary according to bank-level characteristics of the European banks: namely, their financial soundness, asset portfolio quality and the level of transparency. Our findings document an overall negative market reaction to the QE announcements; at a more fine-grained level of analysis we highlight that banks falling short of the regulatory requirements are not expected to benefit from additional liquidity. This study contributes to the literature on the role of liquidity in banks by showing important boundary conditions to the beneficial role of liquidity in banks, that is—because of the regulatory capital requirements—liquidity is only valuable to investors if it can be reinvested once constraints are overcome.
 
This study extends research on the board nationality and gender diversity to a new, unchartered, methodological territory of qualitative comparative analysis (QCA). QCA is based on Boolean algebra and facilitates the application of set-theoretic reasoning to the data analysis. This work adds to the repository of academic studies, which put forward a ‘business case’ for the board nationality and gender diversity in terms of their positive impact on the board outcomes. Based on the upper echelons theory and the ‘value-in-diversity’ proposition, we assess the influence of board nationality and gender diversity on board commitment, which is measured with two proxies: the annual number of board meetings and board evaluation. The findings indicate that both board nationality and gender diversity are part of the intermediate solutions for the outcome variable. The impact of both variables on board commitment is typically detected in large firms that are internationalised but not product-diversified, the boards of which tend to be small. These results confirm that the increasing emphasis on ensuring significant board nationality/ethnic and gender diversity in board composition within the regulatory documents on corporate governance represents a step in the right direction.
 
Places and times cornerstones in the evolution of ServiceCo
Service provision model of ServiceCo
This paper investigates the case of a hybrid organization located in Northern Italy with the aim of providing an understanding of the role of the context, defined in terms of ‘place’ and ‘time’, in shaping organizational changes. A dynamic institutional approach focused on both ‘place’ and ‘time’ as key explanatory factors can provide a valuable framework to understand both the changing institutional demands on the firm and the rationalities behind the changes that occur at organizational, strategic and governance level. Consequently, this paper aims to contribute to the institutional logics literature by describing how these two contextual elements can be used to interpret institutional logic pressures on the organization under investigation as well as govern changes at micro level. The results indicate that the changes were produced by dynamics that are exogenous and endogenous to the organization in the case study and strongly influenced by the context in which it operates. The paper also highlights how changes in terms of service provision, accountability and organizational setting are the results of the ‘place’ and ‘time’ in which these events occur.
 
Archival research on integrated reporting
Key findings of the literature review
Vote counting results for the included variables in the literature review
Integrated reporting (IR) represents an innovative approach to business reporting especially by Public Interest Entities (PIEs). In addition to financial capital, the integrated report includes material information about manufactured, intellectual, human, social and relational, and natural capitals. Although there has been a steady growth in empirical IR research, there is – as yet – no literature review on the business case for IR. Thus, the purpose of this study is to convey a detailed understanding of the governance-, (non) financial performance-, and reporting-related determinants of IR and its contribution to firm value in line with the business case argument. To do so, we selected 85 quantitative peer-reviewed archival studies on that topic. We have then differentiated said studies between those that focus on IR adoption versus those that focus on IR quality, with a legitimacy- and stakeholder-theory-based framework. This differentiation is crucial, to stress the challenges of greenwashing policies and information overload. Here, in contrast to former literature reviews on IR, we provide new insights into this emerging research topic and concentrate on archival IR research. We are also interested in recent moderator- and mediator analysis in archival IR research since the business case argument for IR may require a specific environment, in addition to the main variables we have included. We likewise give a detailed overview of included variables and proxies and compare their main statistical effects. Our literature review demonstrates that 1) board composition and 2) stakeholder pressure positively influence IR quality; whereas 3) (non) financial performance leads to increased IR adoption and quality. We also find that both IR adoption and IR quality are linked with positive consequences on firm valuation, as they lead to higher total performance measures. Last but not least, this analysis includes useful recommendations for future IR research.
 
Overview of conceptual design
Bar chart of clusters and their scores in the F-PEC dimensions. The scores presented in the graph are standardized latent variable scores, which have a mean of 0 and standard deviation of 1. These scores were obtained in the confirmatory factor analyses and were the input for the cluster analyses. In the graph we present the mean score of each factor and for each cluster. Power refers to family involvement in management; Experience refers to the generations involved in the firm, management, and board; Culture_F1 refers to family and company values; Culture_F2 indicates the dedication of the family to the company; and Culture_F3 covers the support from the employees
Correlations among latent variables
This study advances the discussion on the governance of family businesses in emerging markets by exploring a taxonomy based on the F-PEC model in order to improve the essence concept, as an antecedent of governance strategy. This may enable the entity to adapt during its lifetime. Our survey covered unlisted private Brazilian family businesses, from which we obtained a final sample of 107 firms. We applied multivariate data analysis procedures, including exploratory factor and confirmatory factor analyses, cluster analysis, and discriminant analysis. Four types of family businesses emerged: family control with low homogeneous values, dedicated family control with strong values, family business after founder time with strong values, and family involved in control and management with employees’ supportive values. This paper fills some of the knowledge gaps by developing a taxonomy based on family business essence as well as on an emerging market. It also offers a family business taxonomy for when there is no stock market influence. The conclusions provide a contribution to governance by identifying one profile that deviates far from the concept of essence and three others that are adherent due to different combinations of power, experience, and culture elements. The family business particularities identified in the different clusters involve different implications for governance in terms of individuals, structure, activities, and rules.
 
Private equity is a source of finance and a governance device characterised by active monitoring through sponsors that intervene in targets’ corporate governance. As sponsors are skilled and motivated acquirors, we investigated whether corporate governance mechanisms mitigate leveraged targets’ risk of financial distress differently compared to non-acquired companies through the lenses of agency theory and resource-based theories. We found that targets and non-acquired companies are not significantly different in terms of corporate governance features, but sponsors are skilled enough to choose corporate governance members to mitigate risk more, especially when boards are smaller, have busier industry expert directors, and mandate execution to more managers. These results can be useful to targets, targets’ investors and lenders, and policymakers.
 
Clusters of the study.
Source research data
Clusters performance mean.
Source research data
The purpose of this paper is to analyze how different configurations of network governance influence the performance of member firms. To achieve this objective, we surveyed 338 Brazilian firms participating in strategic networks (SNs). We addressed our research question by employing cluster analysis and the Kruskal–Wallis test. We focus the literature review on formal and relational governance of SNs and their interplay. We found three clusters that illustrate different configurations of governance. One cluster is characterized by relatively high levels of formal and relational governance in small and young SNs. A second cluster is characterized by low levels of formal governance and relatively high levels of relational governance, but surprisingly in larger and older SNs. The third cluster is characterized by relatively low levels of formal and relational governance in small and young SNs. Our main results illustrate different configurations of governance of SNs. Small and young SNs that combined high levels of formal and relational governance also present the highest levels of firm performance. Surprisingly, larger and older SNs followed a governance configuration based on high levels of relational governance and low levels of formal governance. These findings direct to new configurations of network governance that are controversial to existing literature and also offer managerial contributions. We contribute to the debate about formal and relational governance by adding two new variables to the analysis—network size and network age. Results show that SNs with different size and age may adopt distinct governance configurations.
 
This paper examines the impact of product market competition on the dividend policy of Indian firms. We have taken product market competition as the proxy of external corporate governance. This study has used 1142 non-financial, non-utility, and non-government Indian firms listed in NSE from 2001 to 2018. For the purpose, five different product market competition and three various dividend measures were employed. Also, the interaction between product market competition (external) and board corporate governance (internal) on dividend policy was examined using a newly developed board corporate governance index (BCGI). The findings suggest that non-competitive firms are more likely to pay higher dividends than competitive firms. Non-competitive firms face more significant agency problems and therefore, pay higher dividends than competitive firms. Finally, the study found that the influence of internal corporate governance on dividends to be much higher and significant in the case of non-competitive firms compared to competitive firms. Overall, the findings of this study offer consistent evidence that external corporate governance and dividend policy are substitutes, and higher agency costs and higher internal governance strengthens this relationship. The outcomes of this study can help the managers to more precisely take dividend decisions by looking at the competition level in the market. The results suggest that managers should pay less dividends when firms operate in a high-competitive industry and vice-versa. The policymakers should design corporate governance norms after considering the competitiveness of the industry.
 
ANCOVA results (H: presence of women on the board)
ANCOVA results (H3: market-based performance)
Drawing on institutional theory and resource dependence theory, this study examines whether mandating gender quotas for corporate boards is associated with a greater presence of women on boards, better accounting-based and market-based performance, more innovativeness, and more external female directors. Based on a cross-country comparative sample of companies from 18 countries, our results suggest that organizations in countries where gender quotas are implemented show better market-based performance and better board vigilance through a higher number of external directors than organizations in countries where quotas are not implemented. The direct impact of gender quotas on innovativeness and accounting performance is not observed. Our findings add to the institutional theory literature by suggesting that companies respond strategically and show acquiescence in their strategic response when institutional pressure addresses ethical concerns (gender diversity). The results support institutional theory’s contentions that companies from countries mandating gender quotas are valued more highly by the market. Nevertheless, the impacts on accounting performance and innovativeness are not apparent. Additionally, adopting a resource dependence approach, we find that the presence of women on boards is associated with more efficient corporate governance practices. The results of this study demonstrate the positive implications of gender quotas for company boards. The upper echelons of companies and country policymakers may better understand the importance of diversity and the presence of female directors on company boards.
 
Residuals’ correlogram (1)
Residuals’ correlogram (2)
This paper aims to analyse the impact of firms’ corporate governance characteristics on the degree of first-day returns (i.e., underpricing) in the Italian initial public offering (IPO) market. In particular, this work investigates the impacts of the characteristics of boards of directors (BoDs) and ownership structure on the underpricing of newly offered shares. By studying a sample of 128 Italian IPOs between 2000 and 2016, it is concluded that corporate governance characteristics affect the degree of first-day returns following a company’s IPO. More specifically, the size of the BoD negatively affects underpricing, while the ownership of institutional investors and board members has a positive effect on the degree of underpricing. Conversely, no significant evidence is found with regard to board independence, the number of female directors in the boardroom, the implementation of stock option plans and ownership concentration.
 
Using a and a unique set of Italian non-listed Unlikely to Pay (UTP) positions, that consist in the phase that precedes the insolvency but where it is still possible for the company to succeed in restructuring, this paper aims to analyze the relationships between corporate governance characteristics and financial distress status. We compare the performance of corporate governance variables in predicting corporate defaults, using both the Logit and Random Forest models, which previous researchers have deemed to be the most efficient machine learning techniques. Our results show that the use of corporate governance variables – especially with regards to CEO renewal and stability in the composition of the board of directors – increases the accuracy of the Random Forest technique and influences the success of the turnaround process. This paper also confirms the Random Forest technique’s ability to significantly outperform the Logit model in terms of accuracy.
 
Different spheres of value creation in the temporal frame (compiled from Finne & Grönroos 2009; Grönroos & Voima, 2013)
The pragmatic constructivist approach (based on Nørreklit 2017a, b)
Communication as a value-driven exchange of facts and possibilities among actors
Combining SL and PC to understand the VIU enabled by the screening technology
Combining SL and PC to understand the VIU enabled by the medicine dispensing robots
The paper discusses how healthcare providers can enable value-in-use (VIU) using digital technologies in complex healthcare service contexts. Technology providers and public healthcare organizations can have difficulties understanding one another, hindering the possibilities for value-in-use to emerge. Plenty of studies have investigated the value creation in healthcare, often looking at health as value for the patient. We focus on how healthcare providers can create value for themselves to improve their operations and justify the price of new technologies while fully acknowledging the value for the patient as well. The paper uses two in-depth interventionist case studies in Nordic health care: automated screening technology for hospital laboratories and medicine dispensing robotics for home care. We use a novel combination of pragmatic constructivism (PC) and service logic (SL) as method theories to understand the value creation in our cases. Our empirical evidence provide practical examples of how digital technologies can be used to change healthcare practices and how VIU can stem from these changes. As a contribution, we show that healthcare providers can enable value-in-use with digital technologies by altering how care is carried out without hindering what the outcome of the care is for the patient. Digital technologies are there to facilitate such change, but the change still requires that actors involved in care have intention to change how they work. While healthcare bears the responsibility for these changes, technology providers can also have plenty of opportunities for interaction to support or even co-create value together with their customers.
 
Hybrid organizational models
Interpretative framework: strategic focuses and organizational design choices
Hybrid organizations’ success should effectively fulfill both beneficiaries’ and customers’ needs, requirements, and expectations, being embedded in the conflicting—and often incompatible—institutional logics of social mission and commercial activities. Despite the increasing attention to such a phenomenon in the business research literature, still little is known regarding how hybrid organizational structures may facilitate or hinder the co-existence of such conflicting institutional logics. Relying on an inductive comparative case study realized on 9 socially entrepreneurial NPOs—which represent significant examples of socially imprinted organizations involved in commercial activities (hybrid)—operating in the Italian socio-healthcare sector, two main concerns have arisen as particularly influenced by organizational decisions, namely (a) effectively combining multiple identities within the organization and (b) gaining legitimacy from stakeholders. Results show that a coherent identity for a hybrid organization seems to be facilitated by an integrated structure, i.e., social programs and commercial activities run in a unique organization. On the contrary, a compartmentalized organizational structure creates two separate legal entities of a social or commercial nature only and is more crucial in gaining external legitimacy. Finally, some hybrids seem to mimic both features of these organizational structures, tackling both necessities. Thus, this study provides comparisons and practice-oriented implications to implement such organizational changes and explores the complex universe of hybrid organizational design by simultaneously comparing different organizational structures.
 
The Effect of Executive Compensation on Banking Stability
The Moderating Effect of Corruption on Banking Stability
This study examines the relationship between executive compensation and banking stability by considering the moderating role of corruption control. This study uses a sample of panel data that includes 74 banks operating in 10 OECD countries during the period 2006–2016. Generalized Moments Method (GMM) regression was used to test the hypotheses. The empirical results show that executive compensation (both fixed and variable) positively affects bank stability. Additionally, effective corruption control moderates the impact of CEO's behavior on banking stability. This study contributes to the existing literature by constructing incentives for CEO and assessing their impact on banking stability, while reflecting the moderating effect of corruption control in the country. These findings are useful for financial regulatory establishments to implement anti-corruption measures in banking institutions, maintain banking stability, and ensure sustainable economic development.
 
Structural model with parceling showing that organizational identification fully mediates the relationship between POSR and employee engagement. POSR Perceptions of Organizational Social Responsibility, OrgID Organizational Identity, EmpEng Employee Engagement
This quantitative study investigated the effects of a city’s social responsibility activities on public employees’ organizational identity and engagement to determine if the effects are similar to those found for employees working in the private sector. Research has consistently shown the positive effects of corporate social responsibility efforts on private sector employees’ attitudes and behaviors; however, researchers warn against applying theories developed in the private sector to the public sector without acknowledging the unique motives that attract individuals to the public sector. For example, studies show individuals with higher public service motivation (PSM) are attracted to the public sector because they identify with those in need and prefer helping others through their jobs. Although PSM and social responsibility are distinct, and even seemingly divergent constructs, both constructs offer explanations for how employees’ prosocial activities may be related through the lens of organizational identity, yet studies to-date have not examined the impact of organizational social responsibility (OSR) activities on public sector employees’ attitudes. Our findings revealed employee perceptions of the city’s social responsibility efforts predict employees’ organizational identity and organizational identity fully mediates the relationship between perceptions of social responsibility and employee engagement, suggesting organizational identity develops before employee engagement and could be considered an antecedent of engagement. These results imply that a public agency’s social responsibility initiatives may provide a mechanism for increasing employee engagement. Implications for public managers and theory are discussed.
 
The moderating role of a non-egalitarian context
Within-country EQI in Italy.
Source Charron et al. (2021)
Interaction graphs
Building on social construction theory, this paper investigates how the presence of women on the board may affect access to credit because of lenders’ gender-stereotyped views. In our view this translates into different levels of the firm's bank debt. To evaluate the impact of gender as a social construct, we designed a within-country analysis in Italy by distinguishing between egalitarian and non-egalitarian contexts. To test our hypotheses, we used a sample of 3514 Italian listed and unlisted firms. Results showed a lower level of bank debt for firms with a relevant number of women in the boardroom (i.e., critical mass) if located in a non-egalitarian context. This effect was partially mitigated in firms during a crisis situation. While extant research explains gender-based differences in a firm’s financial structure by a change in inner-board mechanism/dynamics caused by differences in men/women characteristics, we argue that the social construction of gender may also induce lenders in different contexts to view boards with women differently in relation to access to credit.
 
Structuring State-owned enterprises
Source Authors own elaboration with insights from Williams (1979; 2005).
Hybridity in transaction cost economics and ownership literatures
Source Authors own elaboration.
Proposed hybridity applicable to SOEs
Source Authors’ own elaboration.
In the context of governing state-owned enterprises (SOEs), we respond to calls for further research into public entrepreneurship and for theorising hybridity in SOEs, by navigating through the diverse and fragmented literature on public entrepreneurship. Synthesising this literature will improve our understanding of this complex organisation form and identify key areas of tension, enabling the development and deployment of more appropriate governance models for SOEs. A modified five-stage systematic literature review process is used to ensure that this study sufficiently encapsulate the significant topics, themes and debates in SOEs, relating to relevant early and contemporary studies. We identify areas that introduce significant tension into this organisation field, noting that corporate governance within SOEs constitutes a laboratory for governance issues. Linking public entrepreneurship with public enterprises, we discuss the restructuring of SOEs as well as hybridity in SOEs. Taking into account the practices and characteristics of SOEs, we argue that the missing link in theorising hybridity in SOEs is theorising hybridity in terms of objective/activity; thus bridging this gap. In concluding, we note that although this paper has discussed some of the identified gaps at length, it is a precursor for future research convergence, thereby pointing to areas for future research.
 
Covid-19 is an unprecedented crisis that faces the majority of governments around the world. The pandemic has resulted in substantial changes to government work cultures, financial management, and the implementation of good governance. The paper has shown how these governments react to the crisis caused by Covid-19. We analyse strategy, policy, and financial management when facing Covid-19 and give a result that will contribute to the development of crisis governance field. In this article, we argue that the most successful action in response to the COVID-19 pandemic in high income, upper-middle income, and lower-middle income countries is guided by the implementation of good governance principles. Data used in this research was obtained from the World Health Organization and the World Bank. The results indicate that countries that have been able to manage the COVID-19 pandemic have good governance indicators, such as voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption.
 
Management forecasts represent voluntary corporate disclosures, intended to communicate information about firms’ future performance and reduce information asymmetry between management and shareholders. While prior studies have explored factors that are likely to influence the quality of management forecasts, our study focuses on the role of the internal audit function (IAF) as a critical determinant of effective corporate governance. Specifically, we investigate the relationship between the quality of the internal audit function and the accuracy and precision of management earnings forecasts. Based on data drawn from a sample of firms surveyed by the Institute of Internal Auditors, our results indicate that firms with high quality IAFs are likely to report management forecasts that are not only more accurate but are also more precise, compared to firms with low quality IAFs. Our study provides empirical evidence that IAF quality is a good indicator of the effectiveness of corporate governance, and is associated with the quality of financial disclosure, measured in terms of the accuracy and precision of management forecasts. Our research contributes to the extant literature by highlighting the critical role of the IAF as an important management function to ensure greater precision and accuracy of earnings forecasts.
 
This study explores the impact of board effectiveness on cybersecurity-related disclosure. Based on a sample of 300 firm-years consisting of the largest Canadian listed companies over a period of five years, we find evidence that board effectiveness positively affects a firm’s decision to disclose cybersecurity information, and board independence and financial expertise have a positive impact on the amount of this disclosure. Independent members of the board, acting as a governance and oversight mechanism, significantly increase the disclosure of cybersecurity risks in the company’s financial statements. The board has a fiduciary role to monitor management and board members’ financial expertise contributes to risk assessment and management. Cybersecurity, as an emerging governance topic, demands multiple areas of expertise in technical, ethical, and financial areas. Board members should be continually trained to be aware of the evolution and diversification of business risks and should have appropriate skills and competencies to manage them. Our findings shed light on the positive impact of board members’ financial expertise on the volume of cybersecurity disclosure. However, board size appears to have no impact on this amount, possibly because few board members have cybersecurity expertise.
 
This study explores the impact of board effectiveness on cybersecurity-related disclosure. Based on a sample of 300 firm-years consisting of the largest Canadian listed companies over a period of five years, we find evidence that board effectiveness positively affects a firm’s decision to disclose cybersecurity information, and board independence and financial expertise have a positive impact on the amount of this disclosure. Independent members of the board, acting as a governance and oversight mechanism, significantly increase the disclosure of cybersecurity risks in the company’s financial statements. The board has a fiduciary role to monitor management and board members’ financial expertise contributes to risk assessment and management. Cybersecurity, as an emerging governance topic, demands multiple areas of expertise in technical, ethical, and financial areas. Board members should be continually trained to be aware of the evolution and diversification of business risks and should have appropriate skills and competencies to manage them. Our findings shed light on the positive impact of board members’ financial expertise on the volume of cybersecurity disclosure. However, board size appears to have no impact on this amount, possibly because few board members have cybersecurity expertise.
 
Main axes and outcomes of university management reforms in France
University autonomy and performance orientation have been the central points of the French higher education modernisation reforms since the 1990s. These reforms have met with criticism and opposition from academics for introducing new values and professional norms that they argue are incompatible with the academic profession. The present research analyses the experience of French academics from three public universities of the new, performance-oriented management model. It explores academics’ perception of the effects of this evolution on their professional identity. Thirty-seven semi-structured interviews were analysed using NVivo software. The results show that the new governance model stressing managerialism with an empowered president, combined with the growing importance of performance measurement systems, has created tensions between traditional norms, values, and practices on the one hand and the objectives and culture of the emerging formal institutional structure and management on the other. The research sheds light on an important value conflict in the context of the transformation of academic identity as a result of the competitive and performance-oriented culture. This evolution has influenced (at least partially) the way academics perceive their profession and reduced the admiration they had before.
 
Accreditation and self-assessment cycle
Many reforms have aimed at introducing and developing managerial tools in public organisations. However, their limited degree of translation is still unexplained. The purpose of this paper is to explore how individuals face managerial reforms using the frame of institutional logics. In particular, the paper analyses to what extent individuals identify opportunities and constraints associated with the reforms depending on the institutional logics they activate. The paper attains this aim by analysing the performance management system of teaching activities introduced by an Italian national reform (Act 240/2010). A qualitative approach was adopted by interviewing presidents of programmes and teaching managers of two Italian universities. Findings reveal that the multiple and competing logics existing in public organisations have strong influences on individuals’ reactions to new managerial practices. The reforms put internal contradictions between multiple individual goals and identities in the spotlight so that the same reform contains a plurality of organisational and managerial consequences.
 
Examples of public value indicators used by each HEI
More than 25 years after Moore’s first introduction of the public value concept in 1995, the concept is now widely used, but its operationalization is still considered difficult. This paper presents the empirical results of a study analyzing the application of the public value concept in Higher Education Institutions, thereby focusing on how to account for public value. The paper shows how Dutch universities of applied sciences operationalize the concept ‘public value’, and how they report on the outcome achievements. The official strategy plans and annual reports for FY2016 through FY2018 of the ten largest institutions were used. While we find that all the institutions selected aim to deliver public value, they still use performance indicators that have a more narrow orientation, and are primarily focused on processes, outputs, and service delivery quality. However, we also observe that they use narratives to show the public value they created. In this way this paper contributes to the literature on public value accounting.
 
Corporate governance remains fundamental to ensuring the social mission alongside the financial sustainability of microfinance institutions. One primary governance issue relates to the legal form used to perform microfinance activities. The sector deploys various forms including Banks, Non-Bank Financial Institutions, Cooperatives and NGOs, but each of them has unique features that lead to different orders of priorities and to distinct structures and mechanisms to pursue such a dual objective. This study compares the board governance model and the performance of cooperative organizations (COOPs) with nongovernmental organizations (NGOs) involved in microfinance. Using data on 352 rated microfinance institutions, the test results show that, compared to NGOs, COOPs have larger boards and a higher number of board meetings. However, NGOs have a greater percentage of international board members. The test on performance reveals that, whereas COOPs are more cost-efficient and charge lower interest rates, NGOs generally perform better in terms of social performance. However, the two organizational types do not perform differently in terms of profitability.
 
of proposed EPU-entrenchment scenarios and resultant CSR expectations
Moderating effect of uncertainty on the managerial entrenchment–corporate social responsibility relationship
Control variables
The behavioral theory of corporate governance is employed to investigate the relationship between managerial entrenchment and corporate social responsibility (CSR) engagement. Effective corporate governance is argued to reduce managerial entrenchment, thereby increasing CSR engagement. The role of economic policy uncertainty (EPU) is investigated as a moderating variable in this relationship, such that high levels of EPU will increase the impact of entrenchment on CSR engagement. These arguments are supported using a panel of 386 US firms from 2011 to 2018 representing 3,088 firm-year observations in a variety of industries. In supplementary analysis, the CSR measure is disaggregated in order to provide further insight regarding these relationships as they pertain to the individual CSR dimensions under study. Findings inform research regarding the entrenchment-CSR link in particular environmental contexts. Practical implications include potential governance guidelines for boards of directors; stakeholder management given the policy environment; and the impact of government decisions as they affect policy uncertainty, firm actions, and CSR engagement.
 
Board characteristics and theories, as suggested by previous studies
Industry distribution
Board characteristics and theories, according to our findings
The amount of literature on IR has grown over the last few years, but while particular attention has been paid to the variables that can play a role in IR adoption, IR quality and its determinants are still the subject of debate. The main determinants of IR quality outlined by the literature are firm size, industry, national context, firm performance, assurance, and to a lesser extent, corporate governance and company ownership structure. However, previous studies have usually reached conflicting results, thus not providing shared conclusions. This paper aims to understand the impact of the Board of Directors’ features on IR quality, evaluated in terms of the degree of compliance between IR content and the guidelines suggested in the IR framework presented by IIRC. The Board’s characteristics considered are size, composition and diversity with regard to board members’ gender, age and level of education. 53 companies were taken into consideration from 2013 to 2016 for a total number of 212 integrated reports. Five research hypotheses were developed. Research findings highlight that IR quality is positively associated with the level of education of board members, and negatively with the presence of women. Moreover, among control variables, profitability (positive relation) and leverage (negative relation) are relevant determinants. Our research findings support the idea that the “quality” of the board members matters more than their “quantity” in increasing IR quality, and that diversity in the board is more relevant than diversity of the board.
 
Some possible combinations of productivity and distribution regimes
This paper offers a critical assessment of the value added intellectual coefficient (VAIC) through the analysis of the coherence of the definitions of and semantic relationships among the theoretical constructs at the heart of the model. Some of the criticisms detected here refer to inconsistencies of the VAIC with the most consolidated concepts developed by the Intellectual Capital (IC) literature as well as to the constructs internal to the model and generated by the misalignment of Pulic’s theoretical assumptions with the way they have been translated into the mathematical model. Other criticisms derive from the time mismatch in the relationship among the variables constituting the three ratios and from the ambiguous meanings of human capital efficiency and structural capital efficiency. Implications for both researchers and managers are discussed.
 
This paper seeks to understand the structure of corporate networks in the period following the dissolution of Deutschland AG ("Germany Inc."). For this purpose, affiliation networks among chief executive officers (CEOs) that are based on common membership in various societal organizations will be examined. I apply an innovative mix of methods for studying a sample of CEOs from the 100 top companies in Germany in the 2010s. Based on social network analysis, I show that the overall affiliation network has all features of a small-world network, i.e., a high clustering coefficient and a short path length among the CEOs. The average degree of separation among German CEOs is only two steps. Another innovative contribution of this paper is its study of the linkage between affiliation network features and patterns of corporate recruitment. Using multiple correspondence analysis, I show that different subgroups of the overall affiliation network have their specific network characteristics and recruitment patterns. Within the network, managers from automotive and technical engineering often assume brokerage positions, while managers from the trade branch are largely isolated. This study shows that the affiliation networks and corporate recruitment patterns are interlinked; the transformation of corporate networks is a dynamic outcome of interrelations among different subgroups within the network, each with distinct educational, professional, and network characteristics.
 
Definition of variables and previous literature finding
The correlation matrix
Arellano and Bond dynamic panel GMM estimation: Impact of corporate governance variables on non-performing loans for the Full sample
Arellano and Bond dynamic panel GMM estimation: Impact of corporate governance variables on non-performing loans for Large banks (Assets > $10 Billion)
Summary of the impact of corporate governance variables on non-performing loans for small, medium and large US banks
This paper aims to study the ability of the corporate governance of banks to reduce non-performing loans. The dynamic panel GMM estimation is applied to 184 US commercial banks over 2000–2013 period. Given that bank-size groups have different risk profiles, the full sample of US banks is divided into three asset-size classes. For every asset-size group of banks, we successively integrate five corporate governance variables in addition to the bank-specific and macroeconomic variables in separate regressions. The central finding of this research is that small banks are characterized by a weak and fragile corporate governance system which leads to a bad loan quality. This result can be explained by small banks’ reliance on personal connections. Concerning medium banks, we notice a sound corporate governance system. As far as large banks are concerned, it is to mention that the corporate governance system of these banks is neutralized. On account of the high level of liquidity, large banks are engaged in excessive lending practices without taking notice of the undue losses. This paper notably contributes to the financial literature via empirically proving that the effect of banks’ corporate governance on their loan quality depends on bank size.
 
Environmental performance and disclosure perceptual mapping
Previous studies on the relationship between environmental performance and environmental disclosure have found mixed results. This exploratory qualitative study investigates the possible reasons for the environmental disclosures of nine companies listed in the top 200 Australian Securities Exchange (ASX) companies. This study reveals that the companies were more likely to disclose environmental information if their stakeholders, particularly from the financial markets (investors) and/or customers, demanded that they do so. Disclosure can then be seen as a function of stakeholders’ demand or pressure, and in the absence of such a demand, firms may disclose little or remain silent. The good and poor environmental performers in this study, as rated by the Corporate Monitor ratings of environmental performance, tend to exhibit the same disclosure behaviour, which may indicate that the environmental disclosure may not necessarily reflect the actual performance.
 
Evolution of average SOCENV score during the period 2002–2018
Average SOCENV by country
This paper investigates the influence of corporate social responsibility on firm performance by integrating simultaneously the moderating effects of the firm size and its industry profile. To conduct our study, we use annual environmental, social and governance (ESG) data on 407 European firms listed in STOXX Europe 600 Index during the period 2002–2018. Results reveal that the moderating effect of size is positive for environmentally sensitive industries and negative for environmentally non-sensitive industries. We conclude that in environmentally non-sensitive industries, large firms engage in symbolic CSR practices, while smaller ones implement substantive CSR actions. However, in environmentally sensitive industries, in order to meet stakeholders’ requirements, large firms engage in effective CSR initiatives, while smaller ones, being forced to involve in costly CSR practices, would be harmed and lose all interest in CSR implementation. This study has implications for policymakers, investors and corporate managers in various industries for evaluating and controlling the effectiveness of CSR practices and initiatives.
 
New Product Development Process
Digital platform structure
The ambition of digitalisation to create centralised knowledge for all organisational actors may lead to the risk of de-contextualising that knowledge from the situation in which the information was generated, neglecting the specificities of local organisational contexts. To prevent such risk, digitalisation should promote the spread of a common language between its users who share rules and principles that lead to the same meanings. We refer to the concept of the language game to study how accounting reports receive meanings according to their use, and thereby how the use of accounting language helps in managing the specifics of organisational contexts. Considering complex organisations where different local accounting language games coexist, management accounting studies on digitalisation fail to explain how digital technology can promote the combination of those language games. The present study aims to answer the question of how digitalisation, promoting a global accounting language game, favours the combination of the accounting language games arising from local organisational contexts. This question is addressed by examining the case of the performance measurement of the new product development process in a multidivisional company. The case evidence highlights how a digital platform, promoting a corporate accounting language game for the whole organisation, favoured the combination of divisional accounting language games. The paper points out how digitalisation affects the boundaries between local and global accounting language games in the production of knowledge for decision-making. Also, the paper shows how digital technology is beneficial only when it does not compromise interactions between the different organisational contexts.
 
of the propositions of the research. Adapted from Hollandts and Guedri (2008)
Data structuring (adapted from Gioia et al., 2013) and a summary of results
Employee share ownership offers the workforce an opportunity to participate in the growth of their company via two mechanisms: profit sharing and power sharing. Profit sharing has been widely studied in the academic literature. Power sharing, on the other hand, has received little attention—notably in the form of the presence of a director representing the interests of employees who own shares on governance bodies. We study 10 French companies with employee shareholder representation on governance bodies, and our findings reveal the dual nature of the role. On the one hand, the participation of employee shareholders in governance bodies seems to have an influence on the disciplinary, partnership, cognitive and behavioural levels. On the other hand, it can be a source of entrenchment, as tensions that are specific to this little-known mandate reflect tensions within the company itself.
 
Conceptual framework of good urban governance.
Source: FAO, 2007
The purpose of the study was to assess the practices and challenges of urban land governance in the Tigrai Region. This study employed a concurrent nested design. Data were collected from 177 officeholders and customers through questionnaires. Besides, interviews were conducted with purposefully selected officeholders. The results of the data analysis were presented using mean, standard deviation, Pearson correlation, and logistic regression to see the relationship between the independent variables and the dependent variable. The major findings showed that the elements of good urban governance (participation, responsiveness, accountability, transparency , equity, and efficiency and effectiveness) are not practiced appropriately. The major challenges in good urban land governance are lack of resources, commitment, human resources, clear rules and regulations, modern service delivery, materials, budget, and rent-seeking behavior. As a result, citizens are not satisfied with the urban land governance system and implementation process. Thus, the government should reconsider strengthening urban land institutions.
 
Top-cited authors
Dulacha Galgallo Barako
  • Kenya School of Monetary Studies
Alistair Brown
  • Curtin University
Mahbub Zaman
  • University of Hull
Elizabeth W. Cooper
  • La Salle University
Lars Lindkvist
  • Linköping University